Fintech giant PayPal had a strong second quarter, beating the analysts’ expectations thanks to improving operating margins. Investors took notice, with PayPal’s stock surging 8% in the aftermath of the earnings release.
PayPal reported revenue of $7.89 billion, seeing an 8% increase compared to the Q2 of 2023 and beating the $7.81 billion estimate by analysts. It’s $1.19 in adjusted earnings per share, which also came above expectations of $0.98. Additionally, its payment volumes came at $416.81 billion, an increase of 11% compared to the same period last year.
The company now expects its full-year adjusted profit growth to come at a “low to mid-teens percentage” after projecting “mid-to-high single-digit” growth back in April. It forecasts a “mid-single-digit percentage” increase in revenue for the third quarter, which came below analysts’ estimates of 7.5%.
“PayPal delivered a strong second quarter and first half, and I’m confident we’re on the right track,” said CEO Alex Chriss in a press release. “We delivered our best transaction margin dollar growth since 2021, and we are making steady progress on our strategic transformation while investing in innovation and operating more efficiently.”
PayPal’s shares jumped by 8.33% early on Tuesday, trading at $63.85 per share. The stock is up 10.45% for the past month and currently 3.89% up year-to-date.